The Australian Medical Association (AMA) Victoria on Monday, December 28th called on the government to introduce a new tobacco transaction tax that would raise the cost of a pack of 30 cigarettes to about $20 from July 2012. AMA Victoria president Harry Hemley said that in a survey this year, three quarters of smokers said they would quit if the price of cigarettes rose by half."A significant price increase should be the next step in reducing the addiction, disease and death we see from cigarette smoking," Dr Hemley said in a statement."Children are particularly price sensitive, so a steep increase in the cost of smokes should see less children taking up this destructive habit."

The proposal would raise the cost of smokes by 10 cents a cigarette in July 2010, 15 cents in 2011 and another 20 cents in July 2012.

Smoking was the largest cause of preventable disease in Victoria, causing around 4,000 deaths each year, Dr Hemley said.

"The federal government has failed to implement substantial tobacco increases. It is now time for the Victorian government to take matters into its own hands and introduce a tobacco transaction levy."